Chinese firm Dongjin Group has signed a formal investment agreement with the Punjab Board of Investment and Trade to establish a dry battery manufacturing facility at Allama Iqbal Industrial City in Faisalabad, committing approximately $15 million to a project that is targeting Pakistan’s rapidly expanding battery market driven by growing adoption of electric vehicles and solar energy storage systems. The facility will be located within the Special Economic Zone developed under the China-Pakistan Economic Corridor framework, giving Dongjin Group access to modern infrastructure and a favourable investor environment that the zone has been specifically designed to offer to foreign manufacturers looking to establish a production base in Pakistan.
According to PBIT Director of Marketing Sharqui Ali Tipu, the decision to establish the facility was directly driven by Pakistan’s surging demand for batteries across two distinct but related growth sectors: electric vehicle adoption, which is accelerating following the government’s National Electric Vehicle Policy, and residential and commercial solar energy systems, where battery storage has become an increasingly essential component as Pakistani households and businesses invest in alternatives to the grid. The project is expected to stimulate broader industrial activity beyond battery manufacturing itself, enabling technology transfer and supporting allied industries spanning automotive parts, electronics, chemicals, packaging, and engineering services, while also generating new direct employment opportunities in Faisalabad and its surrounding areas.
Under Pakistan’s Special Economic Zone incentive regime, Dongjin Group will benefit from a ten-year income tax holiday alongside a one-time exemption on customs duties and taxes for imported machinery and equipment, significantly reducing the capital burden of establishing the manufacturing facility. Former Engineering Development Board chairman Almas Hyder placed the investment in a wider strategic context, noting that Pakistan is gradually moving toward localising lithium-ion and advanced battery manufacturing to strengthen the country’s energy security and reduce its dependence on imported batteries. He emphasised that batteries are becoming strategically vital globally due to rising demand from electric vehicles, renewable energy storage, and power grid stability applications, and that building domestic production capacity would help Pakistan reduce its reliance on expensive imported electricity and fossil fuels while supporting the country’s long-term industrial and energy transition objectives.
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